Tesla’s Market Cap Dips Below $500 Billion Tuesday Widening Gap Between Musk And World’s No. 1 Richest To $12 Billion

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Musk previously became the first ever person worth more than $300 billion after Tesla’s market capitalization reached $1 trillion in late October 2021.

In late October 2021, Tesla’s market capitalization reached $1 trillion for the first time, making CEO Elon Musk the first ever person worth $300 billion or more. On Tuesday, the electric vehicle maker’s equity valuation dipped below $500 billion in mid-day trading for the first time since November 2020, before rebounding to hover slightly above that mark.

Tesla shares, which fell as much as 6.5% Tuesday, were down 4% as of 2 p.m. ET, shaving another $4.6 billion off the fortune of Elon Musk, who was worth an estimated $176.7 billion at the time–nearly $12 billion less than French luxury conglomerate LVMH’s Bernard Arnault, the world’s richest person since last week. Arnault is currently worth just under $189 billion. Arnault passed Musk for the first time last Wednesday, December 7, and the two traded spots in the days that followed.

“There’s no major [Tesla-specific] news out today,” says CFRA analyst Garrett Nelson. “The company just can’t catch a break in terms of investor sentiment. There’s a growing recognition that the sooner Elon Musk assumes a chairman role at Twitter and appoints someone to take over the day-to-day operations, the better off TSLA investors will be.”

The drop in Tesla’s stock price Tuesday followed a positive CPI report that showed inflation eased in November, sending the broader market upwards. As of 2 p.m., the tech-heavy Nasdaq was up nearly 1%. Tesla’s latest “milestone”, meanwhile, was the culmination of a year-long decline, with its stock down more than 50% in 2022–almost all of that since Musk announced his $44 billion Twitter takeover in mid-April.

“Musk has gone from a superhero [for] Tesla’s stock to a villain in the eyes of the Street as the overhang grows with each tweet,” says Wedbush analyst Dan Ives. “The Twitter circus show has hurt the Musk brand and it’s a major overhang on Tesla’s stock. Musk is Tesla and Tesla is Musk.”

 

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😂😝😂😝😂do you really think he care? No! I'll bet by the end of 2023 he's 1 by a large margin.

Musk has a tough road ahead in trying to restore free speech in America while exposing the collusion between government agencies and the woke media to influence elections. America's future may depend upon his success.

How will he survive

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